Neal Barton's POV

It's a ponzi scheme

POV

POSTED: Tuesday, September 13, 2011 - 7:00pm

UPDATED: Saturday, September 17, 2011 - 12:56am

I was watching the debate last night and laughed out loud when Governor Rick Perry would not back down on the ponzi scheme comments about social security.

Like everyone else who is dissecting this- let's go to Webster's dictionary.

Webster says it's "an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks."

That's what Social Security has become. Even liberal commentator Chris Matthews said the same thing last week.

It is a ponzi scheme.

Let's face it, when FDR came up with this idea most folks died in their 60s. It was supposed to be good for a year or two and then you're gone.

Now people live so much longer.

The entire social security argument has been demagogued so long. Most politicians know all they have to go is say their opponent wants to fiddle with your Social Security and it's supposed to set off a smoke
alarm.

i have a 90-year old relative out of state that thinks rick Perry wants to pull her social security.

Thats not true.

But this problem has become a mess. It doesn't need to be pulled. It needs to be fixed. You cannot fix things until you admit there is a problem. And anyone who thinks we can keep Social Security going the way it's run right now is is seriously mistaken.

That's my POV, what's yours?

you can email me at pov@ketknbc.com.

Comments News Comments

If you want to fix Social Security--make the entire government have SSI as their sole retirement--no more cush Golden Parachute retirements for the politicians and their families. What is good for one is good for all. What reason do they have to fix it if it isn't going to affect them. Same with the social medicine--they sold us out but gave themselves and their families a much better option.

True it isn't a ponzi scheme. However, since Johnson raided it to pay for Vietnam it has been used to buy votes from the elderly and the poor, to trap them into poverty. The biggest beneficiary has been the federal government and the beauracracy that runs the Social Security Admin. the elderly and poor get only a tiny sliver of the pie, but yet talk about shrinking that pie and look who gets threatened.

CNN FactCheck Article (9/13): "Contribution levels will have to be raised in order to avoid future benefit cuts, but it is not a 'monstrous lie' to say the program will continue even if nothing is done . . . Social Security is not a fraudulent criminal enterprise designed only to benefit current participants in the program. It is a legitimate government program meant to serve both current and future generations of retirees.”

Ponzi Scheme: "A form of fraud in which in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns..."

FDR, 1935: "We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age."

Doesn't sound the same to me.

Fixing Social Security is a far different undertaking than simply calling it a "ponzi scheme." Lots of things: cars, houses, you name it, need periodic updating and adjustment. Is this bad? Perry is not telling any of us things we did not already know, so why the big fuss? Ah yes, it is because he is from Texas and therefore unassailable, right?

In a lot of ways it is a ponzi scheme, but at gun point. In a real ponzi scheme you don't have to invest. Try saying no to social security taxes.

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